US PCE inf accelerated to 3.8% YoY in the 12 months to April, the fastest since
May 2023, driven by higher energy prices linked to the Iran war, the Bureau of
Economic Analysis said. March PCE was revised to 3.5% YoY. Core PCE rose 3.3%
YoY in April versus 3.2% in March. The PCE gauge is the Fed's preferred metric
against its 2% target; the print reinforces views the Fed could keep policy
rates unchanged for an extended period, potentially into next year. Markets
price the policy rate at 3.50%-3.75% through 2027.
